As the controversy continues in many states over whether it is legal for municipal electric utilities to provide retail or wholesale communications services, Bristol Virginia Utilities (BVU—Bristol, VA) has moved forward with its plan to offer customers a triple-play package of voice, video, and high-speed data. The Virginia utility took on the state legislature in federal court and won permission to provide the services as a municipal electric system. Winning this long legal struggle has put BVU in a position to challenge other CLECs in its utility-service area. "While our case was still in the court of appeals following a favorable outcome, we went before the state legislature and had legislation adopted that allowed municipals with electric systems—about a dozen or so—to have the potential of becoming CLECs," says Jim Kelley, vice president of operations for BVU's OptiNet. "The newly passed legislation states that any municipal with a headend in operation prior to Dec. 31, 2002 can also offer cable television services. Bristol is the only Virginia municipal that meets that requirement."
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